Warrants (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of warrants activity

		Weighted
		Average
		Exercise		Range of
	Shares(1)	Price		Exercise Prices
Outstanding at December 31, 2015	4,567,207	$	1.49	$0.01 - $4.50
Exercised	(953,592)	$	0.01	$0.01
Outstanding at March 31, 2016	3,613,615	$	1.89	$0.01 - $4.50
Exercisable at March 31, 2016	1,986,222	$	2.04	$0.01 - $4.50

(1) Outstanding and exercisable information includes 170,676 equity-classified warrants.

Black Scholes

Schedule of Share Based Payment Award Warrants Valuation Assumptions

		March 31, 2016					December 31, 2015
Issued April 2014
	Number of warrants	148,000		(1)	664,000		148,000		(1)	664,000
	CDTi stock price	$	0.72		$	0.72	$	0.94		$	0.94
	Strike price	$	1.70		$	4.20	$	1.70		$	4.20
	Expected volatility	95.2%			98.0%		96.7%			94.4%
	Risk-free interest rate	1.1%			1.0%		1.6%			1.5%
	Dividend yield	–			–		–			–
	Expected life in years	4.1			3.5		4.4			3.8

(1) Concurrent with the November 2015 offering, these warrants were exchanged for warrants with a different strike price and term.

		March 31,		December 31,
		2016		2015
Issued November 2014
	Number of warrants	388,393		388,393
	CDTi stock price	$	0.72	$	0.94
	Strike price	$	1.70	$	1.70
	Expected volatility (1)	94.8%		96.6%
	Risk-free interest rate	1.1%		1.6%
	Dividend yield	–		–
	Expected life in years	4.2		4.4

		March 31, 2016					December 31, 2015
Issued June 2015
	Number of warrants	320,000		(1)	180,000		320,000		(1)	180,000
	CDTi stock price	$	0.72		$	0.72	$	0.94		$	0.94
	Strike price	$	1.70		$	2.65	$	1.70		$	2.65
	Expected volatility	102.0%			96.2%		110.3%			102.3%
	Risk-free interest rate	1.3%			1.2%		1.8%			1.7%
	Dividend yield	–			–		–			–
	Expected life in years	5.3			4.7		5.5			4.9

(1) Concurrent with the November 2015 offering, these warrants were exchanged for warrants with a different strike price and term.

		March 31, 2016				December 31, 2015
		Series A		Series B(1)		Series A		Series B(1)
Issued November 2015
	Number of warrants	771,000		732,546		771,000		1,686,138
	CDTi stock price	$	0.72	$	0.72	$	0.94	$	0.94
	Strike price	$	1.70	$	0.01	$	1.70	$	0.01
	Expected volatility	94.2%		–		96.6%		–
	Risk-free interest rate	1.3%		–		1.8%		–
	Dividend yield	–		–		–		–
	Expected life in years	5.2		–		5.5		–

(1) Due to the $0.01 strike price, fair value equals CDTi stock price minus the strike price.

Monte Carlo Simulation Model

Schedule of Share Based Payment Award Warrants Valuation Assumptions

		March 31, 2016					December 31, 2015
Issued July 2013
	Number of warrants	94,000		(1)	65,000		94,000		(1)	65,000
	CDTi stock price	$	0.72		$	0.72	$	0.94		$	0.94
	Strike price	$	1.22		$	1.22	$	1.22		$	1.22
	Expected volatility	92.5%			102.3%		95.5%			99.1%
	Risk-free interest rate	1.0%			0.8%		1.5%			1.2%
	Dividend yield	–			–		–			–
	Expected life in years	3.6			2.3		3.9			2.5

(1) In connection with a letter agreement, dated October 7, 2015, the Company agreed to amend the term of these warrants in order to extend the expiration date until November 11, 2019.

		March 31,		December 31,
		2016		2015
Issued November 2014
	Number of warrants	80,000		80,000
	CDTi stock price	$	0.72	$	0.94
	Strike price	$	1.22	$	1.22
	Expected volatility (1)	92.5%		95.5%
	Risk-free interest rate	1.0%		1.5%
	Dividend yield	–		–
	Expected life in years	3.6		3.9